Airbus finds itself in a challenging position between its immediate goals and long-term aspirations. The French aircraft manufacturer is making efforts to reduce costs in the short term while setting itself up to benefit from mistakes made by its primary competitor, Boeing.
According to a Reuters report, Airbus expects the global number of airplanes to double over the next two decades. The latest forecast suggests there will be just over 48,000 jets in the skies, a slight increase from last year’s estimate. Given that Airbus and Boeing dominate the commercial airliner production market, this growth is expected to significantly benefit Airbus.
However, Reuters also mentioned that Airbus is currently cutting costs and instituting a hiring freeze to maintain profit margins this year. Although Airbus could capitalize on Boeing’s reduced capacity after a mid-air door plug incident earlier this year, it has lowered its earnings expectations for 2024 due to ongoing supply chain issues that have hindered new aircraft production.
It remains uncertain whether Airbus’s current strategy will allow another competitor to enter the market. Brazil’s Embraer, known for producing smaller aircraft, is rumored to be developing larger planes to compete with Boeing and Airbus. However, no official plans have been confirmed so far.